Washington — Iran stands to receive up to $300 billion in investments from Gulf states as part of a recent memorandum of understanding (MOU) aimed at de-escalating tensions in the region, U.S. Vice President JD Vance said Monday. The Gulf Coast Coalition is expected to fund this reconstruction effort, contingent on Iran meeting specific conditions, according to Vance.

The agreement, signed electronically Sunday by Vance, former President Donald Trump, and Iranian Parliament Speaker Mohammad-Bagher Ghalibaf, marks a diplomatic breakthrough nearly three months after hostilities erupted in the Gulf. The deal, announced publicly by Pakistani Prime Minister Shehbaz Sharif, is designed to restore the status quo prior to the conflict, including the removal of a U.S. naval blockade and the reopening of the Strait of Hormuz to free maritime passage.

“The funds would only be disbursed if Iran honors its end of the obligation,” Vance told CBS News, emphasizing that Iran must meet specific security benchmarks, including halting its nuclear enrichment program and permitting robust inspections. “We are open to Gulf investments in rebuilding Iran, but only if Iran ends their nuclear weapons ambitions and demonstrates transparency with inspectors,” he added.

However, skepticism remains. Senator Lindsey Graham (R-SC) criticized the proposed reconstruction fund, describing it as unrealistic given Iran’s leadership. “It would be akin to a Marshall Plan for Germany with the Nazis still in charge,” Graham posted on social media, reflecting concerns over Tehran's commitment to genuine reform and denuclearization.

The military conflict that prompted this agreement began in late February when the U.S. and Israel launched an attack on Iran’s nuclear facilities, prompting Iran to retaliate by firing on Gulf neighbors including the United Arab Emirates, Qatar, Jordan, Kuwait, and Saudi Arabia — all hosts to U.S. military bases.

While the MOU establishes a 60-day period during which Tehran guarantees free passage through the Strait of Hormuz, Iranian state media reported a purported change in terms granting Iran and Oman recognized authority over the waterway after this window expires. According to Iran’s Fars news agency, Iran intends to charge vessels tolls for services related to security, navigation, environmental management, and insurance thereafter. U.S. officials have disputed this interpretation, maintaining that the strait will remain toll-free and fully open for at least the 60-day period.

Further negotiations are expected to focus on the specifics of Iran’s nuclear program. A senior U.S. official said discussions will center on preventing the country from enriching uranium to high levels and securing effective inspection regimes. Trump reportedly gave tentative approval for down-blending Iran’s stockpile of 60 percent enriched uranium to lower enrichment levels, though the logistics of uranium removal or handling remain unresolved.

The MOU represents a tentative step toward stabilizing relations in a volatile region, though significant obstacles persist. Both sides acknowledge that the broader nuclear and security issues will require further, complex negotiations in the weeks ahead.